Image by Gerd Altmann from Pixabay
During this globally challenging time, starting a business might be the last thing on your mind. While many people are struggling and don’t know what the future holds for them, it could be the perfect time to think about self-employment. In the current climate, it's highly likely that you have found yourself in a position where your company has furloughed you, you might have had to take additional leave, it could be that you are working reduced hours or have even been laid off. While these situations are unfortunate, what they do give you is time - time to reassess and you could really use this to your advantage and take the opportunity and think about whether working for yourself could be the right thing for you.
Many people will think that a pandemic or a recession would be the absolute worst time to start a new business. People are more cautious with their money; they don't want to be spending when life looks so uncertain. Then there is the fact that hiring is so much harder to do when you can't interview candidates in person, so trying to build a team remotely is incredibly challenging. While, you might experience a different startup lifecycle than you would at any other time, that doesn’t necessarily make it a bad thing. Did you know that some of the biggest brands in the world started during a recession? Burger King was born in the 1950s after the Korean War laid the US economy low, and people needed fast, affordable food. Then there was FedEx which began as a university project during the 1969-71 depression and turned into a business with almost $70 billion revenue and of course there's Microsoft which began in 1975, in a period of high unemployment, rising inflation and stagnant GDP in America.
When times are tough, it forces people to analyse their circumstances, and that can be the best time to make positive changes which can build a more prosperous future for you and your family. An economic downturn can create a range of unexpected opportunities for entrepreneurs with an appetite for innovation. The timing can mean low-interest rates for borrowing startup capital, cheaper equipment as businesses sell off inventory or lower lease rates as landlords scramble to fill empty spaces. So, if you’re on the fence right now and You have a good business idea but have been put off by the pandemic, here are seven reasons why now could be the perfect time to take the plunge and start your business.
There is greater access to talent
Right now, there are a load of talented, educated and brilliant people out of work through no fault of their own. While many of them will be furloughed and hoping to get back to work, nothing is guaranteed, and they might never end up going back to their old jobs. Even people who are secure in their companies may be using this time to think about what they want from their life, so could be on the lookout for an exciting opportunity that you could give them. You could also make the most of freelancers who are a great and flexible resource during a recession. Basically, you can hire better people at a lower price tag during tough times.
You can open ready for the ‘new normal.’
While no one knows exactly what the future will look like, we have a good idea of what expectations, safety measures and standards will be. You can also now identify the new needs that customers have as a result of the current crisis and create your business to serve this need in a way that is substantially better than the existing alternatives. With the knowledge behind you, you can start your business with new precautions already in place. You can look at global trends and learn from what is happening around the world. Think foot-operated doors, mobile sanitation, furniture that doesn’t just look cool but can stand up to robust cleaning.
Necessity drives innovation
They say necessity is the mother of invention, and that is especially true during a financial downturn. Recessions cause problems that people need solutions to and Coronavirus has created a particular set of issues that startups can cure. The current pandemic has seen so much innovation already as small businesses are filling gaps left by more prominent companies. Local food deliveries are stepping up when supermarkets can’t meet demand, other businesses are innovating to offer new services such as online courses or people with a sewing machine are busy making and selling face masks and PPE. Startup businesses are innovative and agile which is exactly what the world needs right now.
Borrowing is accessible
It might seem counterintuitive, but economic uncertainty creates a great environment to seek funding. Interest rates are lower, which means loans are more affordable and investors use a downturn to get more for their money by investing in startups.
The competition is lower
Many businesses will find themselves with less competition as competitors struggle to restart after the pandemic. For those businesses that are able to innovate or borrow to stay afloat, this can be an advantage when they re-enter the marketplace.
People are more open to change
In times of crisis, people are usually looking for a change; they want to move forward so that the same crisis doesn't happen again. People accept that we are all building a new normal and part of that will be finding new ways to live, work, and play. They are open to it, and in fact, many people are actually excited for a change.
The power is in your hands
With many businesses actively looking for new custom, now is an excellent time to negotiate for better terms and lower prices. If you’re in a decent position moneywise right now, then it could also be a time to buy up other businesses or their assets, if they have decided to cease trading. While it's important not to take advantage of a bad situation, what you can do is help out in a bad situation at the same time as building a business and a better life for yourself.